The euro made its way back to 1.4430 where it died down. The market appears to be waiting for the flurry of data coming out during the London and US session on Wednesday. I prefer waiting for the market to show a little more life before entering. Keep holding the longs from below in case we get a break higher.

Not much has happened today in the way of new setup. Overnight the euro popped up briefly to 1.4437, just shy of 1.4450 that I mentioned on Friday before trickling back down to 1.4376 where it found support. I would still hold the longs from below since volatility increases at new highs/lows. At the same time, I’m looking for a new short entry during the next trading sessions when trading activity increases. My initial target Value Levels to short are: 1.4450-1.4500. I’ll revise the numbers if this changes during the next trading sessions.

Euro Sell Setup Continued...

The euro has been stagnant into the close as traders take off for the weekend. The cable had a similar setup as the euro and fell off about 100 pips. I am still expecting a correction on the euro so keep looking to sell into this rally. Especially, if it shoots up to 1.4450. Don’t get suckered into that move and get caught buying a top. Wait for a correction to get positioned. Have a great weekend!

Euro Sell Setup

The euro rally has continued nicely. I would keep looking to buy dips for the time being, possibly around 1.4250. I'll confirm that Value Level when price is near it. In the meantime, if you want a countertrend trade, look to sell the euro between 1.4370-1.4400.

USD/CAD Buy Setup Continued...

It’s been a few weeks since my last post on the USD/CAD. Not much has changed in regards to the buy setup. My target for buying at the beginning of October ’07 was between .9800-.9700. It’s been range bound with lots of chances to get long within this range and make some money. The first entry just was just below the .9800 handle at .9780. Price rallied up to .9893 before making a move lower to the .9700 handle where it bounced around in a 50-100 channel before breaking lower to .9631. I am long again at this area as price is hitting key support areas which also coincide with monthly, weekly and daily value levels. Once hit, these areas usually produce some nice moves in the intended direction, to the upside in this case. To make it as a successful trader you have to be willing to step up to the plate when everyone else is doing the exact opposite. I can’t tell you how many people think I’m crazy for taking this position. That’s how I know that the odds of me being on the right side of the market are in my favor.

Euro

The long on the euro from 1.4130 is working out very well. Make sure to manage your trade and consider leaving something on the table for a possible retest of the 1.4350 area or better.

Get Long The Euro

The short on the eur/usd from 1.4300-1.4350 has played out nicely. Start looking to get long around 1.4130-1.4100 and then again around 1.4050.

Euro Trade Setup

New Value Levels for the euro. Look to short around 1.4300-1.4350. These are Daily and Weekly Value Levels. Remember to manage your euro longs.

The euro is trying to break out of a month long resistance area. If the year's high of 1.4281 breaks, I would look for a target of 1.4400. Get long on a pullback and let 'er work. When the conditions are right, this will be some of the easiest trading you’ll ever do. If you bought between the 1.4040-1.4000 support area make sure to raise your stops and lock in some nice profit. If resistance breaks, I will start looking for a place to short. I’ll talk more about that as the setup unfolds.

EUR/USD Sell Setup

The previous sell setup around the 1.4200-1.4250 worked out well for about 50-80 pips depending on the entry. There were a few opportunities at shorting in that area. Since Friday, price has been consolidating at support, 1.4150, which was a great place to add to your longs. That won’t be the focus of this post since I didn’t get a message sent out about that setup. I am now looking to short between the 1.4250-1.4300 area. Adjust stops on any longs you’re holding and let them work. The funny thing about trends is that they are persistent and take awhile to turn around. Nevertheless, there are many great counter-trend opportunities if you know what to look for. Just don’t hold on to them as long as you would a trend trade.

EUR/USD Sell Setup

The previous sell at the 1.4170 area worked out nicely. Support entered the market around 1.4125 where it consolidated most of the day and then rallied higher during the London session. I am now looking to short once again around the 1.4200-1.4250 Value Levels.

EUR/USD Sell Setup

The eur/usd came down into the buy zone and made a low of 1.4014 this week before rebounding up to 1.4169. Hopefully, you were able to spot this setup from my previous post on Friday. I would start looking to sell around 1.4170-1.4200.

USD/CAD

I'm starting to like the long side of the usd/cad. This pair is making new 30 year lows. I will start accumulating a long term position on dips around 0.9800-0.9700. Don't get sucked in and short if this pair starts to push lower... unless you're in a charitable mood and want to give your money away. If you are, let me know and I'll send you my bank wire instructions. = )

NFP

Today was a great day for trading the breakout and buying it back off support at the bottom of newly forming 4hr trend channel. If it breaks up above 1.4150 I would start looking for a place to get short on a retest of the the highs or at one of the fibo retracement levels on the attached chart. If I were to get long I would prefer waiting for price to return back to the 1.4050 area as most breakouts are false breakouts. At least on the first attempts. Look for a pullback to buy into if you see a place to get long. From a long term trading perspective, I'm still bearish and will look to short rallies. Expect a lot of volatility and two way trading opportunities until we get a break lower. Remember that it's Friday so don't over extend yourself. Trade light so you can relax over the weekend. There will always be another trade. Just have a little patience.

EUR/USD

The currency pair that is the most attractive to me at the moment is the eur/usd. It has made multi-year highs this week at 1.4281 and has since fallen back down to 1.4066. I am taking a bearish stance and will be looking to sell rallies. Since NFP is this Friday, I will stand aside and wait for a setup. I would love to see the euro rally and hit a Value Level that I can start selling into. I will talk more later about Value Levels and how they can be used to position yourself in a low risk trade that doesn't require a lot of chart monitoring. After all, who wants to be glued to the charts waiting for a setup? Trade setups can take time before they are ready. Staring at the charts won’t speed things up. There are better things to do while the setup is forming. Go play some golf or spend some time with your family. Happy Trading!